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                                                               Ф КГМА 1-8-22/02
                                              МУ Организация методической работы
                                                      ГОСО 2006 г. от 04.07.2007 г.



             KARAGANDA STATE MEDICAL ACADEMY

    Department: History of Kazakhstan and social political disciplines




                  METHODICAL RECOMMENDATIONS
                      FOR PRACTICE LESSONS




 Topic:    Economic cycle. Inflation and unemployment.

 Specialty: 051301 General Medicine

 Discipline: Bases of economic theory

 Course:      1


Compliers:        Chesnokova I.A.




                          Karaganda 2008
                                        2
Discussed and confirmed
at the meeting of the Department
Protocol № _____ of _____________

Head of the Department ______________
                                                                                                       3



1. Topic. Economic cycle. Inflation and unemployment.
2. Purpose: student should know definition of inflation and unemployment, inflation of demand,
   stagnation, deflation, difference between anticipate and unanticipated inflation, theories of the
   causes of inflation, types of unemployment, if you are eligible to collect unemployment
   insurance benefits, be able to compute the unemployment rate, be able to differentiate among
   frictional, structural, and cyclical unemployment, understand the concept of full employment
3. Educational objectives: introduce with demand-pull and cost-push inflations, the causes of
   inflation, the psychology of inflation, creeping inflation and hyperinflation.
4. Basic questions.
1. Inflation and deflation
2. Anticipate and unanticipated inflation
3. Theory of the causes of inflation
4. Types of unemployment.
5. Educational methods: seminar
6. References:
       1. Steve Slavin,Ph.D.Economics.A selfteaching guide.second edition.NewYork,1999.,248
       2. Борисов Е.Ф., Волков Ф.М. Основы экономической теории (//Эконом. Науки).
       3. Мамедов О.Ю. Основы экономической теории.
       4. Самуэльсон П. Экономикс.
       5. Медведев С.И. Политическая экономия.
       6. Моканелл К., Брю С. Экономикс
7. Control:

I -variant
1. Way of analyzing labor market studies                    c) -labor force
the role of individuals in the labor market                 d) -unemployment level
    a) -microeconomic technique                             e) -employment rate
    b) -macroeconomic technique                         5.This includes those who are not looking
    c) -Marxist approach                                for job, those who are istitutionalised such
    d) -neoclassic way                                  as in prisons, children and etc.
    e) -classic way                                         a) -participation rate
2.Way of analyzing labor market looks at                    b) -nonlabor force
the interrelations between the labor market,                c) -labor force
the goods market, the money market, and                     d) -unemployment level
the foreign trade market                                    e) -employment rate
    a) -microeconomic technique                         6.This is defined as the labor force minus
    b) -macroeconomic technique                         the number of people currently employed
    c) -Marxist approach                                    a) -participation rate
    d) -neoclassic way                                      b) -nonlabor force
    e) -classic way                                         c) -labor force
3.This is defined as the number of people                   d) -unemployment level
employed plus the number unemployed but                     e) -employment rate
seeking work                                            7.This is defined as the level of
    a) -participation rate                              unemployment divided by the labor force
    b) -nonlabor force                                      a) -participation rate
    c) -labor force                                         b) -nonlabor force
    d) -unemployment level                                  c) -unemployment rate
    e) -employment rate                                     d) -unemployment level
4.This is the number of people in the labor                 e) -employment rate
force divided by the size of the adult                  8.This is defined as the number of people
civilian noninstitutional population                    currently employed divided by the adult
    a) -participation rate                              population
    b) -nonlabor force                                      a) -participation rate
                                                                                          4
    b) -nonlabor force                             e) -seasonal
    c) -labor force                            16.How to compute the unemployment rate
    d) -unemployment level                     a) -number of unemployed / labor force
    e) -employment rate                        b) labor force/ number of unemployed
9.Exclude stock variables in a labor market    c) net immigration plus retired / natural
    a) -natural population growth                  population growth
    b) -net immigration                        d) natural population growth/ labor force
    c) -new entrants                           e) number of unemployed/ natural
    d) -retirements from the labor force           population growth
    e) -employment level                       17.An auto worker who is still out of work
10.Exclude flow variables                      two years after his plant closed is an
    a) -employment level                       example of
    b) -unemployment level                         a) -frictional
    c) -new entrants                               b) -structural
    d) -labor force                                c) -classical
    e) -unfilled vacancies                         d) -cyclical
11.This is unemployment when there is not          e) -hidden
enough aggregate demand for the labor,         18.A homemaker returning to the labor
caused by a business cycle recession           market after an absence of ten years who is
    a) -frictional                             looking for work is an example of
    b) -structural                                 a) -frictional
    c) -classical                                  b) -structural
    d) -cyclical                                   c) -classical
    e) -seasonal                                   d) -cyclical
12.This unemployment involves people               e) -hidden
being temporarily between jobs, searching      19.A blue collar worker who is laid off until
for new ones                                   business picks up again is an example of
    a) -frictional                                 a) -frictional
    b) -structural                                 b) -structural
    c) -classical                                  c) -classical
    d) -cyclical                                   d) -cyclical
    e) -seasonal                                   e) -hidden
13. This unemployment involves a               20.A person whose skills have become
mismatch between the good workers              obsolete and is in his or her midfifties
looking for jobs and the vacancies available   would be an example of
    a) -frictional                                 a) -frictional
    b) -structural                                 b) -structural
    c) -classical                                  c) -classical
    d) -cyclical                                   d) -cyclical
    e) -seasonal                                   e) -seasonal
14. This is the unemployment of potential      21. When the unemployment rate goes
workers that is not reflected in official      above 5 percent, anything above that 5
unemployment statistics                        percent level is
    a) -frictional                                 a) -frictional
    b) -hidden                                     b) -structural
    c) -classical                                  c) -classical
    d) -cyclical                                   d) -cyclical
    e) -seasonal                                   e) -seasonal
15. When unemployment is needed to             ?
motivate worker hard and to keep wages         II variant
down                                           1. This is defined as a sustained increase in
    a) -Marxian                                general price levels over a period of time
    b) -structural                                 a) -inflation
    c) -classical                                  b) -deflation
    d) -cyclical                                   c) -disinflation
                                                                                             5
    d) -stagnation                                  b) -built in inflation
    e) -reflation                                   c) -demand pull inflation
2.This is defined as a general falling level        d) -hyperinflation
of prices                                           e) -regional inflation
    a) -inflation                               10. Inflation induced by adaptive
    b) -deflation                               expectations, often linked to the
    c) -disinflation                            “price/wage spiral”
    d) -stagnation                                  a) -cost push inflation
    e) -reflation                                   b) -built in inflation
3. This is defined as the reduction of the          c) -demand pull inflation
rate of inflation                                   d) -hyperinflation
    a) -inflation                                   e) -regional inflation
    b) -deflation                               11. Traditionally, those hurt by inflation
    c) -disinflation                            have been
    d) -stagnation                                  a) -creditors and people on fixed
    e) -reflation                                       incomes
4. This is defined as a combination of              b) -debtors and people on fixed
inflation and rising unemployment                       incomes
    a) -inflation                                   c) -debtors and creditors
    b) -deflation                                   d) -people on fixed incomes
    c) -disinflation                                e) debtors
    d) -stagnation                              12.Farmers have generally been
    e) -reflation                               ________by inflation
5. This is defined as a raising price to            a) -hurt
counteract deflationary pressures                   b) -helped
    a) -inflation                                   c) -neither helped nor hurt
    b) -deflation                                   d) -either helped or hurt
    c) -disinflation                                e) -in some cases hurt
    d) -stagnation                              13. Creditors generally do better when
    e) -reflation                               inflation is
6. Money supply dominates all other factors         a) -anticipated
in determining inflation according to               b) -unanticipated
    a) -monetarist                                  c) -neither
    b) -Keynesians                                  d) -either
    c) -Marxist                                     e) in some cases unanticipated
    d) -classic theorist
    e) -neoclassic theorist
7. Demand for goods dominates all other
factors in determining inflation according to
    a) -monetarist
    b) -Keynesians
    c) -Marxist
    d) -classic theorist
    e) -neoclassic theorist
8. Inflation caused by increases in
aggregate demand due to increased private
and government spending
    a) -cost push inflation
    b) -built in inflation
    c) -demand pull inflation
    d) -hyperinflation
    e) -regional inflation
9.Inflation caused by drops in aggregate
supply due to increased prices of input
    a) -cost push inflation
6

				
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